Ternium Gains After Saying Not Bidding for ThyssenKrupp Plant
Ternium SA (TX), Latin America’s second- largest steelmaker, rose the most in more than 15 months after saying it won’t buy a steel plant from ThyseenKrupp AG in Rio de Janeiro state in Brazil.
Ternium’s American depositary receipts rose 5.4 percent to $22.90 at 11:01 a.m. in New York after gaining as much as 7.4 percent, the biggest intraday increase since Jan. 10, 2012. The Luxembourg-based company extended its rising streak to nine trading days, the most since November 2009.
Chief Executive Officer Daniel Novegil said during an earnings conference call today that Ternium is no longer interested in ThyssenKrupp’s Rio steel slabs plant, known as CSA, because of its valuation and industry conditions in Brazil. The company is assessing alternative growth options after backing out of the bidding process for the asset, he said.
ThyssenKrupp, Germany’s biggest steelmaker, put its Americas unit, including the Rio plant and a asset in Alabama, on sale last year after rising costs and declining profits prompted it to cut the value it books for the units by 3.6 billion euros ($4.7 billion). Ternium had made a binding bid for the Brazilian plant, people familiar with the matter told Bloomberg News earlier this month.
To contact the editor responsible for this story: James Attwood at firstname.lastname@example.org